Huge rise in GP expenses could make some practices unviable within two years

GP principals face a pay cut this year because inflation and recommended pay rises for practice staff are greater than the uplift to practice funding, meaning practice expenses will take up a larger slice of practice income.

Modelling of the impact of inflation levels on practice profits, prepared for the BMA by former GP committee negotiator Peter Holden, and shared with The BMJ, shows that this year profits will fall by 16%—and in terms of buying power GP principals will experience a pay cut of almost 23%.

Holden said, “The key matter here is not just at what point we stop earning a living, which at 10% inflation is after four years, but at what point do the banks get scared and withdraw our loans—which I think could be as early as the end of next year.

“This is urgent. This is not going to go away. I understand the government not reopening the multiyear deal negotiated with the BMA …